

What to Buy Now as The US Loses Its Edge
Sep 22, 2025
Luca Paolini, Chief Strategist at Pictet Asset Management, shares insights into the end of US exceptionalism as the world enters an 'age of convergence.' He explores the shifting dynamics in Europe and China, the implications of AI on market valuations, and why it could be wise to rethink your portfolio with a focus on bonds and gold. Paolini also discusses inflation risks, the appeal of asset tokenization, and the potential for tactical investments in China. Discover practical advice for reallocating assets in today's changing landscape!
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The End Of US Exceptionalism
- Pictet says the era of US exceptionalism is ending and a 'great convergence' of growth and returns is starting.
- Economic and financial performance will look more similar across US, Europe and China, though geopolitics may fragment.
US Growth Fueled By Policy, Not Just Tech
- Much of recent US growth was driven by unusually loose fiscal and monetary policy, which Paolini views as unsustainable.
- Europe may close the gap as Germany and others embrace fiscal activism and inflation normalizes there faster than in the US.
AI: Big Promise, Inevitable Waste
- AI spending shows bubble-like elements and waste is inevitable, yet meaningful long-term gains may follow a boom-bust cycle.
- Paolini warns first-mover US advantage in AI could be commoditized, reducing its lasting edge.